Shares in Delta Electronics Taiwan fell by as much as 5% after the U.S. International Trade Commission (USITC) initiated a patent investigation concerning technologies used in artificial intelligence server systems. The probe, triggered by a complaint from Vicor, introduces market uncertainty for companies shipping advanced computing components to the United States.
The USITC has begun a Section 337 investigation targeting alleged patent infringement related to vertical power delivery systems, key components in AI server infrastructure. Massachusetts-based Vicor filed the complaint, naming Delta Electronics Taiwan, Hon Hai Precision Industry (Foxconn), Infineon, Quanta Computer, and others as respondents. Additional firms from Taiwan, China, Germany, and the U.S. are also included in the proceedings.
Vicor alleges that its patents are being violated by the importation and sale of certain vertical power delivery components and products in the U.S. market. The company is seeking an exclusion order that would block U.S. imports of the specified components and systems containing them, while also requesting cease-and-desist measures.
Should these actions be implemented, shipments to the U.S. of AI server-related equipment—regardless of whether Delta or its co-respondents supply these directly or indirectly—could face notable disruption.
The USITC has clarified that no decision has been reached regarding the merits of the case, as it is currently at an early phase. An administrative law judge will be appointed to examine the evidence and make an initial ruling on whether patent infringement has taken place. Final determinations are typically delivered within 12 to 18 months, with a target timeline set within 45 days of the investigation’s launch.
If the commission ultimately finds infringement occurred, import exclusion and cease-and-desist orders may be issued. If so, such orders become effective immediately but remain subject to a 60-day review period by the U.S. Trade Representative.
Delta Electronics Taiwan stated it places strong emphasis on complying with global intellectual property laws and will respond through proper legal means. The company noted that there has been no impact on its current product lines from the investigation so far.
On Monday at 11:55 AM (Bangkok time), the share price of Delta Electronics (Thailand) Public Company Limited (SET: DELTA) declined by 1.49% or THB 4.00 to THB 264.00, with a trading value of THB 1.38 billion.
ASL Securities views the situation as a short-term negative sentiment due to ongoing uncertainties in the electricity supply business for AI servers and distribution channels in the United States. The impact on profits remains subject to review, particularly concerning the product models and revenue proportions that fall within the scope of the litigation.
If products of Delta Electronics (Thailand) are determined to be covered by the relevant patents and the court ruling is unfavorable, there could be restrictions on deliveries, adjustment costs for product modifications, or expenses related to technology licensing—potentially placing pressure on both the company’s revenue and profit margins.
